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DSDVY vs. OMAB: Which Stock Is the Better Value Option?

Investors with an interest in Transportation - Services stocks have likely encountered both DSV (DSDVY) and Grupo Aeroportuario del Centro Norte (OMAB). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, DSV has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Centro Norte has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that DSDVY likely has seen a stronger improvement to its earnings outlook than OMAB has recently. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

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Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

DSDVY currently has a forward P/E ratio of 14.67, while OMAB has a forward P/E of 17.40. We also note that DSDVY has a PEG ratio of 1.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OMAB currently has a PEG ratio of 5.80.

Another notable valuation metric for DSDVY is its P/B ratio of 3.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OMAB has a P/B of 7.32.

Based on these metrics and many more, DSDVY holds a Value grade of B, while OMAB has a Value grade of D.

DSDVY has seen stronger estimate revision activity and sports more attractive valuation metrics than OMAB, so it seems like value investors will conclude that DSDVY is the superior option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

DSV (DSDVY) : Free Stock Analysis Report

Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research